Bill Text: IL HB0104 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Currency Exchange Act, the Sales Finance Agency Act, the Debt Management Service Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act. Changes application fees, license fees, initial license fees, and fees to operate under those Acts. Changes the fine for late annual consumer installment loan reports to $500 (instead of $25) for each day beyond March 1 such report is filed. Establishes an initial license fee to operate as a payday lender in the amount of $1,250. Changes the fine for late annual payday lender reports to $500 (instead of $25) for each day beyond March 1 such report is filed. In the Sales Finance Agency Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act, makes changes to the expiration date of licenses under those Acts and adds a fee to reinstate an expired license. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0104 Detail]

Download: Illinois-2021-HB0104-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0104 Introduced , by Rep. Jonathan Carroll SYNOPSIS AS INTRODUCED:
205 ILCS 405/4 from Ch. 17, par. 4808
205 ILCS 405/13.1 from Ch. 17, par. 4822
205 ILCS 405/14 from Ch. 17, par. 4823
205 ILCS 405/16 from Ch. 17, par. 4832
205 ILCS 660/5 from Ch. 17, par. 5205
205 ILCS 660/6 from Ch. 17, par. 5206
205 ILCS 665/4 from Ch. 17, par. 5304
205 ILCS 665/6 from Ch. 17, par. 5306
205 ILCS 670/2 from Ch. 17, par. 5402
205 ILCS 670/4 from Ch. 17, par. 5404
205 ILCS 670/8 from Ch. 17, par. 5408
205 ILCS 670/11 from Ch. 17, par. 5411
205 ILCS 670/12.5
815 ILCS 122/2-55
815 ILCS 122/3-5
Amends the Currency Exchange Act, the Sales Finance Agency Act, the Debt Management Service Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act. Changes application fees, license fees, initial license fees, and fees to operate under those Acts. Changes the fine for late annual consumer installment loan reports to $500 (instead of $25) for each day beyond March 1 such report is filed. Establishes an initial license fee to operate as a payday lender in the amount of $1,250. Changes the fine for late annual payday lender reports to $500 (instead of $25) for each day beyond March 1 such report is filed. In the Sales Finance Agency Act, the Consumer Installment Loan Act, and the Payday Loan Reform Act, makes changes to the expiration date of licenses under those Acts and adds a fee to reinstate an expired license. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Currency Exchange Act is amended by
changing Sections 4, 13.1, 14, and 16 as follows:
(205 ILCS 405/4) (from Ch. 17, par. 4808)
Sec. 4. License application; contents; fees. A licensee
shall obtain a separate license for each licensed location.
Application for such license shall be in writing under oath
and in the form prescribed and furnished by the Secretary.
Each application shall contain the following:
(a) The applicant's full name and address (both of
residence and place of business) if the applicant is a
natural person, and if the applicant is a partnership,
limited liability company, or association, of every member
thereof, and the name and principal office if the
applicant is a corporation;
(b) The county and municipality, with street and
number, if any, where the community currency exchange is
to be conducted, if the application is for a community
currency exchange license;
(c) If the application is for an ambulatory currency
exchange license, the name and address of the employer at

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each location to be served by it; and
(d) In the case of a licensee's initial license
application, the applicant's occupation or profession; a
detailed statement of the applicant's business experience
for the 10 years immediately preceding the application; a
detailed statement of the applicant's finances; the
applicant's present or previous connection with any other
currency exchange; whether the applicant has ever been
involved in any civil or criminal litigation, and the
material facts pertaining thereto; whether the applicant
has ever been committed to any penal institution or
admitted to an institution for the care and treatment of
mentally ill persons; and the nature of applicant's
occupancy of the premises to be licensed where the
application is for a community currency exchange license.
If the applicant is a partnership, the information
specified herein shall be required of each partner. If the
applicant is a corporation or limited liability company,
the said information shall be required of each controlling
person thereof along with disclosure of their ownership
interests.
A licensee's initial community currency exchange license
application shall be accompanied by a fee of $1,000 for the
cost of investigating the applicant. A licensee's application
for licenses for additional licensed locations shall be
accompanied by a fee of $1,500 $1,000 for each additional

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license. If the ownership of a licensee or licensed location
changes, in whole or in part, a new application must be filed
pursuant to this Section along with a $500 fee if the
licensee's ownership interests have been transferred or sold
to a new person or entity or a fee of $300 if the licensee's
ownership interests have been transferred or sold to a current
holder or holders of the licensee's ownership interests. When
the application for a community currency exchange license has
been approved by the Secretary and the applicant so advised,
an additional sum of $500 $400 as an annual license fee for a
period terminating on the last day of the current calendar
year shall be paid to the Secretary by the applicant;
provided, that the license fee for an applicant applying for
such a license after July 1st of any year shall be $250 $200
for the balance of such year. Upon receipt of a community
currency exchange license application, the Secretary shall
examine the application for completeness and notify the
applicant in writing of any defect within 20 days after
receipt. The applicant must remedy the defect within 10 days
after the mailing of the notification of the defect by the
Secretary. Failure to timely remedy the defect will void the
application. Once the Secretary determines that the
application is complete, the Secretary shall have 90 business
days to approve or deny the application. If the application is
denied, the Secretary shall send by United States mail notice
of the denial to the applicant at the address set forth in the

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application. If an application is denied, the applicant may,
within 10 days after the date of the notice of denial, make a
written request to the Secretary for a hearing on the
application. The hearing shall be set for a date after the
receipt by the Secretary of the request for a hearing, and
written notice of the time and place of the hearing shall be
mailed to the applicant no later than 15 days before the date
of the hearing. The hearing shall be scheduled for a date
within 56 days after the date of the receipt of the request for
a hearing. The applicant shall pay the actual cost of making
the transcript of the hearing prior to the Secretary's issuing
his or her decision. The Secretary's decision is subject to
review as provided in Section 22.01 of this Act.
An application for an ambulatory currency exchange license
shall be accompanied by a fee of $1,000 $100, which fee shall
be for the cost of investigating the applicant. An approved
applicant shall not be required to pay the initial
investigation fee of $1,000 $100 more than once. When the
application for an ambulatory currency exchange license has
been approved by the Secretary, and such applicant so advised,
such applicant shall pay an annual license fee of $500 $25 for
each and every location to be served by such applicant;
provided that such license fee for an approved applicant
applying for such a license after July 1st of any year shall be
$250 $12 for the balance of such year for each and every
location to be served by such applicant. Such an approved

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applicant for an ambulatory currency exchange license, when
applying for a license with respect to a particular location,
shall file with the Secretary, at the time of filing an
application, a letter of memorandum, which shall be in writing
and under oath, signed by the owner or authorized
representative of the business whose employees are to be
served; such letter or memorandum shall contain a statement
that such service is desired, and that the person signing the
same is authorized so to do. The Secretary shall thereupon
verify the authenticity of the letter or memorandum and the
authority of the person who executed it, to do so.
The Department shall have 45 business days to approve or
deny a licensee's request to purchase another currency
exchange.
(Source: P.A. 99-445, eff. 1-1-16.)
(205 ILCS 405/13.1) (from Ch. 17, par. 4822)
Sec. 13.1. Consolidation of business locations. Whenever 2
or more licensees desire to consolidate their places of
business, they shall make application for such consolidation
to the Secretary upon a form provided by him or her. This
application shall state: (a) the name to be adopted and the
location at which the business is to be located, which name and
location shall be the same as one of the consolidating
licensees; (b) that the owners or all partners or all
stockholders or all members, as the case may be, of the

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licensees involved in the contemplated consolidation, have
approved the application; (c) a certification by the
secretary, if any of the licensees be corporations, that the
contemplated consolidation has been approved by all of the
stockholders at a properly convened stockholders meeting; (d)
other relevant information the Secretary may require.
Simultaneously with the approval of the application by the
Secretary, the licensee or licensees who will cease doing
business shall: (a) surrender their license or licenses to the
Secretary; (b) transfer all of their assets and liabilities to
the licensee continuing to operate by virtue of the
application; (c) apply to the Secretary of State, if they be
corporations, for surrender of their corporate charter in
accordance with the provisions of the Business Corporation Act
of 1983.
An application for consolidation shall be approved or
rejected by the Secretary within 30 days after receipt by him
of such application and supporting documents required
thereunder. The Secretary shall impose a consolidation fee of
$500 $100 per application.
Such consolidation shall not affect suits pending in which
the surrendering licensees are parties; nor shall such
consolidation affect causes of action nor the rights of
persons in particular; nor shall suits brought against such
licensees in their former names be abated for that cause.
Nothing contained herein shall limit or prohibit any

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action or remedy available to a licensee or to the Secretary
under Sections 15, 15.1 to 15.1e or 15.2 of this Act.
(Source: P.A. 97-315, eff. 1-1-12.)
(205 ILCS 405/14) (from Ch. 17, par. 4823)
Sec. 14. Every licensee, shall, on or before November 15,
pay to the Secretary the annual license fee or fees for the
next succeeding calendar year and shall at the same time file
with the Secretary the annual bond or bonds and the insurance
policy or policies as and if required by this Act. The annual
license fee for each community currency exchange shall be $500
$400 for each licensee and $500 $400 for each additional
licensed location. The annual license fee for each location
served by an ambulatory currency exchange shall be $500 $25.
(Source: P.A. 99-445, eff. 1-1-16; 99-549, eff. 7-15-16.)
(205 ILCS 405/16) (from Ch. 17, par. 4832)
Sec. 16. Annual report; investigation; costs.
(a) Each licensee shall annually, on or before the 1st day
of March, file a report with the Secretary for the calendar
year period from January 1st through December 31st, giving
such relevant information as the Secretary may reasonably
require concerning, and for the purpose of examining, the
business and operations during the preceding fiscal year
period of each licensed currency exchange conducted by such
licensee within the State. Such report shall be made under

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oath and shall be in the form prescribed by the Secretary. The
Secretary may at any time, and shall at least once in each
year, investigate the currency exchange business of any
licensee and of every person, partnership, association,
limited liability company, and corporation who or which shall
be engaged in the business of operating a currency exchange.
For that purpose, the Secretary shall have free access to the
offices and places of business and to such records of all such
persons, firms, partnerships, associations, limited liability
companies and members thereof, and corporations and to the
officers and directors thereof that shall relate to such
currency exchange business. The investigation may be conducted
in conjunction with representatives of other State agencies or
agencies of another state or of the United States as
determined by the Secretary. The Secretary may at any time
inspect the locations served by an ambulatory currency
exchange, for the purpose of determining whether such currency
exchange is complying with the provisions of this Act at each
location served. The Secretary may require by subpoena the
attendance of and examine under oath all persons whose
testimony he may require relative to such business, and in
such cases the Secretary, or any qualified representative of
the Secretary whom the Secretary may designate, may administer
oaths to all such persons called as witnesses, and the
Secretary, or any such qualified representative of the
Secretary, may conduct such examinations, and there shall be

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paid to the Secretary for each such examination a fee of $500
$250 for each day or part thereof for each qualified
representative designated and required to conduct the
examination; provided, however, that in the case of an
ambulatory currency exchange, such fee shall be $150 for each
day or part thereof.
(b) Confidentiality. All information collected by the
Department in the course of an examination or investigation of
an ambulatory or community currency exchange or applicant,
including, by not limited to, any complaint against an
ambulatory or community currency exchange filed with the
Department, and information collected to investigate any such
complaint shall be maintained for the confidential use of the
Department and shall not be disclosed. The Department may not
disclose such information to anyone other than law enforcement
officials, other regulatory agencies that have an appropriate
regulatory interest as determined by the Secretary, or to a
party presenting a lawful subpoena to the Department.
Information and documents disclosed to a federal, State,
county, or local law enforcement agency shall not be disclosed
by the agency for any purpose to any other agency or person. A
formal complaint filed against a licensee by the Department or
any order issued by the Department against a licensee shall be
a public record, except as otherwise prohibited by law.
(Source: P.A. 97-315, eff. 1-1-12.)

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Section 10. The Sales Finance Agency Act is amended by
changing Sections 5 and 6 as follows:
(205 ILCS 660/5) (from Ch. 17, par. 5205)
Sec. 5. If a licensee fails to renew his or her license by
the 1st 31st day of December, it shall automatically expire on
the 31st day of December and the licensee is not entitled to a
hearing; however, the Director in his or her discretion, may
reinstate an expired license upon payment of the annual
renewal fee, and proof of good cause for failure to renew, and
payment of an additional fee for failure to renew in a timely
manner as determined by the Director.
(Source: P.A. 90-437, eff. 1-1-98.)
(205 ILCS 660/6) (from Ch. 17, par. 5206)
Sec. 6. A license fee of $1,250 $300 for the applicant's
principal place of business and $1,000 $100 for each
additional place of business for which a license is sought
must be submitted with an application for license made before
July 1 of any year. If application for a license is made on
July 1 or thereafter, a license fee of $150 for the principal
place of business and of $50 for each additional place of
business must accompany the application. Each license remains
in force until surrendered, suspended, or revoked. If the
application for license is denied, the original license fee
shall be retained by the State in reimbursement of its costs of

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investigating that application.
Before the license is granted, the applicant shall prove
in form satisfactory to the Director, that the applicant has a
positive net worth of a minimum of $30,000.
A licensee must pay to the Department, and the Department
must receive, by December 1 of each year, the renewal license
application on forms prescribed by the Director and the
following renewal fee $300 for the license for his principal
place of business and one-half of the following renewal fee
$100 for each additional license held as a renewal license fee
for the succeeding calendar year: .
TOTAL TRANSACTIONS RENEWAL FEE
500 or less.................... $500
More than 500 and
up to and including 1,000......
$500 plus $10 per 50 transactions in excess of 500 transactions
More than 1,000 and
up to and including 10,000.....
$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
More than 10,000 and
up to and including 100,000....
$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions

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More than 100,000..............
$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
As used in this Section, "transactions" means loans made
or acquired pursuant to this Act during the calendar year
preceding the calendar year for which a licensee seeks to
renew its license.
(Source: P.A. 92-398, eff. 1-1-02.)
Section 15. The Debt Management Service Act is amended by
changing Sections 4 and 6 as follows:
(205 ILCS 665/4) (from Ch. 17, par. 5304)
Sec. 4. Application for license. Application for a license
to engage in the debt management service business in this
State shall be made to the Secretary and shall be in writing,
under oath, and in the form prescribed by the Secretary.
Each applicant, at the time of making such application,
shall pay to the Secretary the sum of $1,250 $30.00 as a fee
for investigation of the applicant, and the additional sum of
$100.00 as a license fee.
Every applicant shall submit to the Secretary, at the time
of the application for a license, a bond to be approved by the
Secretary in which the applicant shall be the obligor, in the
sum of $25,000 or such additional amount as required by the
Secretary based on the amount of disbursements made by the

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licensee in the previous year, and in which an insurance
company, which is duly authorized by the State of Illinois, to
transact the business of fidelity and surety insurance shall
be a surety.
The bond shall run to the Secretary for the use of the
Department or of any person or persons who may have a cause of
action against the obligor in said bond arising out of any
violation of this Act or rules by a license. Such bond shall be
conditioned that the obligor will faithfully conform to and
abide by the provisions of this Act and of all rules,
regulations and directions lawfully made by the Secretary and
will pay to the Secretary or to any person or persons any and
all money that may become due or owing to the State or to such
person or persons, from said obligor under and by virtue of the
provisions of this Act.
(Source: P.A. 96-1420, eff. 8-3-10.)
(205 ILCS 665/6) (from Ch. 17, par. 5306)
Sec. 6. Renewal of license. Each debt management service
provider under the provisions of this Act may make application
to the Secretary for renewal of its license, which application
for renewal shall be on the form prescribed by the Secretary
and shall be accompanied by a fee of $1,000 $100.00 together
with a bond or other surety as required, in a minimum amount of
$25,000 or such an amount as required by the Secretary based on
the amount of disbursements made by the licensee in the

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previous year. The application must be received by the
Department no later than December 1 of the year preceding the
year for which the application applies.
(Source: P.A. 96-1420, eff. 8-3-10.)
Section 20. The Consumer Installment Loan Act is amended
by changing Sections 2, 4, 8, 11, and 12.5 as follows:
(205 ILCS 670/2) (from Ch. 17, par. 5402)
Sec. 2. Application; fees; positive net worth. Application
for such license shall be in writing, and in the form
prescribed by the Director. Such applicant at the time of
making such application shall pay to the Director the sum of
$1,250 $300 as an application fee and the additional sum of
$450 as an annual license fee, for a period terminating on the
last day of the current calendar year; provided that if the
application is filed after June 30th in any year, such license
fee shall be 1/2 of the annual license fee for such year.
Before the license is granted, every applicant shall prove
in form satisfactory to the Director that the applicant has
and will maintain a positive net worth of a minimum of $30,000.
Every applicant and licensee shall maintain a surety bond in
the principal sum of $25,000 issued by a bonding company
authorized to do business in this State and which shall be
approved by the Director. Such bond shall run to the Director
and shall be for the benefit of any consumer who incurs damages

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as a result of any violation of the Act or rules by a licensee.
If the Director finds at any time that a bond is of
insufficient size, is insecure, exhausted, or otherwise
doubtful, an additional bond in such amount as determined by
the Director shall be filed by the licensee within 30 days
after written demand therefor by the Director. "Net worth"
means total assets minus total liabilities.
(Source: P.A. 92-398, eff. 1-1-02; 93-32, eff. 7-1-03.)
(205 ILCS 670/4) (from Ch. 17, par. 5404)
Sec. 4. Investigation to determine whether license shall
be issued. Upon the filing of an application and the payment of
the fee, the Director shall investigate to determine (1) that
the reputation of the applicant, including managers of a
limited liability company, partners, owners, officers or
directors thereof is such as to warrant belief that the
business will be operated honestly and fairly within the
purposes of this Act and (2) that the applicant meets the
positive net worth requirement set forth in Section 2 of this
Act. Unless the Director makes findings hereinabove
enumerated, he or she shall not issue a license and shall
notify the applicant of the denial and return to the applicant
the sum paid by the applicant as a license fee, but shall
retain the $1,250 $300 application fee. The Director shall
approve or deny every application for license hereunder within
60 days from the filing thereof with the fee.

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(Source: P.A. 90-437, eff. 1-1-98; 90-575, eff. 3-20-98.)
(205 ILCS 670/8) (from Ch. 17, par. 5408)
Sec. 8. Annual license fee; expenses fee - Expenses.
Before the 1st day of each December, a licensee must pay to the
Director, and the Department must receive, an the annual
license fee calculated as set forth in the following required
by Section 2 for the next succeeding calendar year. The
license shall expire on the first of January unless the
license fee has been paid prior thereto.
TOTAL TRANSACTIONS RENEWAL FEE
500 or less.................... $500
More than 500 and
up to and including 1,000......
$500 plus $10 per 50 transactions in excess of 500 transactions
More than 1,000 and
up to and including 10,000.....
$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
More than 10,000 and
up to and including 100,000....
$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions

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More than 100,000..............
$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
As used in this Section, "transactions" means loans made
pursuant to this Act during the calendar year preceding the
calendar year for which a licensee seeks to renew its license.
In addition to such license fee, the reasonable expense of
any examination, investigation or custody by the Director
under any provisions of this Act shall be borne by the
licensee.
If a licensee fails to renew his or her license by the 1st
31st day of December, it shall automatically expire on the
31st of December and the licensee is not entitled to a hearing;
however, the Director, in his or her discretion, may reinstate
an expired license upon payment of the annual renewal fee, and
proof of good cause for failure to renew, and payment of an
additional fee for failure to renew in a timely manner as
determined by the Director.
(Source: P.A. 100-958, eff. 8-19-18.)
(205 ILCS 670/11) (from Ch. 17, par. 5411)
Sec. 11. Books and records - Reports.
(a) Every licensee shall retain and use in his business or
at another location approved by the Director such records as
are required by the Director to enable the Director to
determine whether the licensee is complying with the

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provisions of this Act and the rules and regulations
promulgated pursuant to this Act. Every licensee shall
preserve the records of any loan for at least 2 years after
making the final entry for such loan. Accounting systems
maintained in whole or in part by mechanical or electronic
data processing methods which provide information equivalent
to that otherwise required and follow generally accepted
accounting principles are acceptable for that purpose, if
approved by the Director in writing.
(b) Each licensee shall annually, on or before the first
day of March, file a report with the Director giving such
relevant information as the Director may reasonably require
concerning the business and operations during the preceding
calendar year of each licensed place of business conducted by
the licensee. The report must be received by the Department on
or before March 1. The report shall be made under oath and in a
form prescribed by the Director. Whenever a licensee operates
2 or more licensed offices or whenever 2 or more affiliated
licensees operate licensed offices, a composite report of such
group of licensed offices may be filed in lieu of individual
reports. The Director may make and publish annually an
analysis and recapitulation of such reports. The Director may
fine each licensee $500 $25 for each day beyond March 1 such
report is filed.
(Source: P.A. 92-398, eff. 1-1-02.)

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(205 ILCS 670/12.5)
Sec. 12.5. Limited purpose branch.
(a) Upon the written approval of the Director, a licensee
may maintain a limited purpose branch for the sole purpose of
making loans as permitted by this Act. A limited purpose
branch may include an automatic loan machine. No other
activity shall be conducted at the site, including but not
limited to, accepting payments, servicing the accounts, or
collections.
(b) The licensee must submit an application for a limited
purpose branch to the Director on forms prescribed by the
Director with an application fee of $1,250 $300. The approval
for the limited purpose branch must be renewed concurrently
with the renewal of the licensee's license along with a
renewal fee as set forth in Section 8 of $300 for the limited
purpose branch.
(c) The books, accounts, records, and files of the limited
purpose branch's transactions shall be maintained at the
licensee's licensed location. The licensee shall notify the
Director of the licensed location at which the books,
accounts, records, and files shall be maintained.
(d) The licensee shall prominently display at the limited
purpose branch the address and telephone number of the
licensee's licensed location.
(e) No other business shall be conducted at the site of the
limited purpose branch unless authorized by the Director.

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(f) The Director shall make and enforce reasonable rules
for the conduct of a limited purpose branch.
(g) A limited purpose branch may not be located within
1,000 feet of a facility operated by an inter-track wagering
licensee or an organization licensee subject to the Illinois
Horse Racing Act of 1975, on a riverboat or in a casino subject
to the Illinois Gambling Act, or within 1,000 feet of the
location at which the riverboat docks or within 1,000 feet of a
casino.
(Source: P.A. 101-31, eff. 6-28-19.)
Section 25. The Payday Loan Reform Act is amended by
changing Sections 2-55 and 3-5 as follows:
(815 ILCS 122/2-55)
Sec. 2-55. Information, reporting, and examination.
(a) A licensee shall keep and use books, accounts, and
records that will enable the Secretary to determine if the
licensee is complying with the provisions of this Act and
maintain any other records as required by the Secretary.
(b) A licensee shall collect and maintain information
annually for a report that shall disclose in detail and under
appropriate headings:
(1) the total number of payday loans made during the
preceding calendar year;
(2) the total number of payday loans outstanding as of

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December 31 of the preceding calendar year;
(3) the minimum, maximum, and average dollar amount of
payday loans made during the preceding calendar year;
(4) the average annual percentage rate and the average
term of payday loans made during the preceding calendar
year; and
(5) the total number of payday loans paid in full, the
total number of loans that went into default, and the
total number of loans written off during the preceding
calendar year.
The report shall be verified by the oath or affirmation of
the owner, manager, or president of the licensee. The report
must be filed with the Secretary no later than March 1 of the
year following the year for which the report discloses the
information specified in this subsection (b). The Secretary
may impose upon the licensee a fine of $500 $25 per day for
each day beyond the filing deadline that the report is not
filed.
(c) No later than July 31 of the second year following the
effective date of this Act, the Department shall publish a
biennial report that contains a compilation of aggregate data
concerning the payday lending industry and shall make the
report available to the Governor, the General Assembly, and
the general public.
(d) The Department shall have the authority to conduct
examinations of the books, records, and loan documents at any

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time.
(Source: P.A. 94-13, eff. 12-6-05.)
(815 ILCS 122/3-5)
Sec. 3-5. Licensure.
(a) A license to make a payday loan shall state the
address, including city and state, at which the business is to
be conducted and shall state fully the name of the licensee.
The license shall be conspicuously posted in the place of
business of the licensee and shall not be transferable or
assignable.
(b) An application for a license shall be in writing and in
a form prescribed by the Secretary. The Secretary may not
issue a payday loan license unless and until the following
findings are made:
(1) that the financial responsibility, experience,
character, and general fitness of the applicant are such
as to command the confidence of the public and to warrant
the belief that the business will be operated lawfully and
fairly and within the provisions and purposes of this Act;
and
(2) that the applicant has submitted such other
information as the Secretary may deem necessary.
(c) A license shall be issued for no longer than one year,
and no renewal of a license may be provided if a licensee has
substantially violated this Act and has not cured the

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violation to the satisfaction of the Department.
(d) A licensee shall appoint, in writing, the Secretary as
attorney-in-fact upon whom all lawful process against the
licensee may be served with the same legal force and validity
as if served on the licensee. A copy of the written
appointment, duly certified, shall be filed in the office of
the Secretary, and a copy thereof certified by the Secretary
shall be sufficient evidence to subject a licensee to
jurisdiction in a court of law. This appointment shall remain
in effect while any liability remains outstanding in this
State against the licensee. When summons is served upon the
Secretary as attorney-in-fact for a licensee, the Secretary
shall immediately notify the licensee by registered mail,
enclosing the summons and specifying the hour and day of
service.
(e) A licensee must pay an initial annual fee of $1,250 and
an annual renewal fee as set forth in the following: $1,000.
TOTAL TRANSACTIONS RENEWAL FEE
500 or less.................... $500
More than 500 and
up to and including 1,000......
$500 plus $10 per 50 transactions in excess of 500 transactions
More than 1,000 and

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up to and including 10,000.....
$1,000 plus $5 per 100 transactions in excess of 1,000 transactions
More than 10,000 and
up to and including 100,000....
$1,450 plus $2.50 per 1,000 transactions in excess of 10,000 transactions
More than 100,000..............
$1,675 plus $1.25 per 10,000 transactions in excess of 100,000 transactions
As used in this Section, "transactions" means loans made
or acquired pursuant to this Act during the calendar year
preceding the calendar year for which a licensee seeks to
renew its license.
In addition to the license fee, the reasonable expense of
any examination or hearing by the Secretary under any
provisions of this Act shall be borne by the licensee. If a
licensee fails to renew its license by December 1, its license
shall automatically expire on December 31
; however, the
Secretary, in his or her discretion, may reinstate an expired
license upon:
(1) payment of the annual fee within 30 days of the
date of expiration; and
(2) proof of good cause for failure to renew; and .
(3) payment of an additional fee for failure to renew
in a timely manner as determined by the Secretary.

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(f) Not more than one place of business shall be
maintained under the same license, but the Secretary may issue
more than one license to the same licensee upon compliance
with all the provisions of this Act governing issuance of a
single license. The location, except those locations already
in existence as of June 1, 2005, may not be within one mile of
a horse race track subject to the Illinois Horse Racing Act of
1975, within one mile of a facility at which gambling is
conducted under the Illinois Gambling Act, within one mile of
the location at which a riverboat subject to the Illinois
Gambling Act docks, or within one mile of any State of Illinois
or United States military base or naval installation.
(g) No licensee shall conduct the business of making loans
under this Act within any office, suite, room, or place of
business in which (1) any loans are offered or made under the
Consumer Installment Loan Act other than title secured loans
as defined in subsection (a) of Section 15 of the Consumer
Installment Loan Act and governed by Title 38, Section 110.330
of the Illinois Administrative Code or (2) any other business
is solicited or engaged in unless the other business is
licensed by the Department or, in the opinion of the
Secretary, the other business would not be contrary to the
best interests of consumers and is authorized by the Secretary
in writing.
(g-5) Notwithstanding subsection (g) of this Section, a
licensee may obtain a license under the Consumer Installment

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Loan Act (CILA) for the exclusive purpose and use of making
title secured loans, as defined in subsection (a) of Section
15 of CILA and governed by Title 38, Section 110.300 of the
Illinois Administrative Code. A licensee may continue to
service Consumer Installment Loan Act loans that were
outstanding as of the effective date of this amendatory Act of
the 96th General Assembly.
(h) The Secretary shall maintain a list of licensees that
shall be available to interested consumers and lenders and the
public. The Secretary shall maintain a toll-free number
whereby consumers may obtain information about licensees. The
Secretary shall also establish a complaint process under which
an aggrieved consumer may file a complaint against a licensee
or non-licensee who violates any provision of this Act.
(Source: P.A. 100-958, eff. 8-19-18; 101-31, eff. 6-28-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.